How can i get started buying used cars at auto auction?

How can i get started buying used cars at auto auction?

I'-d like to buy trade-ins from local dealers, or perhaps other auto auctions, so that I can later re-sell them for cash. Do i need to incorporate as a business at first? Do i need licensing? I'-m currently in North Carolina.

To do either you need to be a dealer.To be a dealer you have to jump through all kind of hoops, the biggest of which is getting garage liability insurance ($2000-2500 per year) and a place of business with a sign.And getting a bond & license fees are least expensive of your concerns.My suggestion would be to try to buy & sell on your own, out of the newspaper and unless you can make money on a regular basis do not bother with getting licensed.Trust me, cars often sell for less out of the newspaper than dealer auctions so if you cant buy & sell out of the newspaper on your own, you don't need to spend the money to be a licensed dealer.Try to buy & sell cars with "open titles". Yes, its technically illegal. Its very, very rare for anyone to get in any real trouble over it.Worst case scenario is you get taken to court, you tell the judge you didn't know and he puts you on probation and tells you not to do it again. But that rarely, if ever, happens.TRUE STORY...I was a licensed dealer and often bought cars out of the newspaper.One friday, I bought a truck for $1400.I sold it a few days later for $2900 (My biggest profit ever in 12+ years in the car business).A year later, I saw the same truck with 20,000 more miles bring $3250 at a dealer only auction. The buyer paid a buyers fee on top of that.My advice, don't become licensed until you have proven to yourself that you can profitably buy & sell cars you obtain elsewhere. You CAN buy cars for wholesale & below on the street. I used to do it often.Now, after you get to selling 2-3 a month for a few months you can make the case for spending what it would to become a licensed dealer. The overhead just kills your chances of keeping your profit.

JetDoc

You'll need a dealer's license to get into the auctions to buy those used cars in the first place. If you're going to sell more than 3-5 cars a year, most states do require you to be licensed as a used car dealer, and you'll have to jump through several hoops in order to get that business license.Source(s):http://www.dmv.org/nc-north-carolina/buy…

Ask

insurance

Popular Q&A

Do I need a consent to settle by my own auto insurance company?
http://www.autoloss.com/Consumer-Advocac…This is a listing of all states with the minimum limits required in each state. The minimum limits can range from as low as $10,000 to as high as $50,000 in the state of Alaska, which is the only one with that high of minimum coverage. What is odd...

Can I be sued if my daughter gets into an accident?
It's not so much the insurance being in your name that makes you liable as it is the fact that the vehicle itself is in your name. If she's driving something that belongs to you, they stand a chance with a lawsuit.If you're really all that worried about the risk, the best thing to do is get...

CA auto insurance quotes. Is there a site to get info without giving them my personal info?
Farmers.com....You CAN add your daughter even with her permit with Farmer's ins. I don't know about other companies though.... you just have to get them a copy of her DL when she gets it. Good luckSource(s):Farmers Ins. Agent

What is the Process of bringing my Canadian Fiancee to the United States?
She cannot work in the US until you are married unless she can get her own work visa

What is the difference between a cheap oil filter and a expensive one?
There's only ONE sure fire "good" oil filter in my opinion, and that's the one designed for your engine by your vehicle manufacturer. I agree that a company like Wix or other may manufacture an oil filter whose specifications and performance exceed those of the OEM manufacturer's brand (like...